When the home has to be both a home and a business, conflict can occur. In order to operate a successful home-based business, there must be a separation between the home and the home-based business. Conflict is likely to occur when there is a breach in the home/home-based business barrier. In order for the business to operate smoothly and the family to live comfortably in their home, communication must be established between the family and the business owners. A family and business require individual attention when it comes to designating space for each. If this does not occur, then four areas of family functioning are likely to be affected.

The needs of the family should take priority over the needs of the home-based business. Before a home-based business can be launched, space needs to be set aside for operational purposes. The household should answer the following questions first: How much space will the home-based business require within the home? What does the family absolutely need from the space in the home? Will the space that will be set aside for the business cause the family extreme discomfort? Is there a way for you to create a space management plan for the household space that can accommodate both your family and your home-based business? Family cohesion shouldn’t be severely impacted by a home-based business.

When a business intrudes on the household space, it also intrudes on the time schedules of everyone within it. Operating a home-based business is particularly difficult for families who have full schedules that are fixed and interlocked. In an instance such as this, the business’s needs would take a back seat to the schedules of those who are running it. Personal and family time schedules tend to be disrupted by home-based businesses if the business is given first preference, and the business tends to suffer if the situation is reversed.

Perhaps the biggest conflict occurs when the family feels as if their space has been violated as a result of having a home-based business. Consider all of the needs of the business. Does the business need extensive storage space or an area for customers to pick up merchandise? If customers and workers are constantly parading through your family room while your family is trying to relax then they will likely feel as their space is being violated. Designate particular areas of the home that business can be done in. Office space can be used for meetings, paper work, and other such activities. If a pick up area is necessary, then the most public areas of the home should be used.

Separation of space between the home and the business is not only beneficial to the family and business, but it is necessary for tax purposes if you plan on taking off deductions for business expenses. You must decide if a part of the house has too many uses to be used for both family and business matters.

When you start a business, you have to be extra careful with how you spend your capital. There are many ways for small business owners to increase their profits. Reducing their costs is one of the simplest and most effective ones. A lot of the times, entrepreneurs would add costs to their budgets that they don’t necessarily have to make. It might appear to them that these are necessary expenses when that’s not the case. They can add many of these expenses once their business has established.

Expenses That Small Businesses Should Avoid

Excessive Advertising

Yes, advertising is quite important for businesses, but excessive advertisement is not. It still makes sense for large businesses to go full-on with advertising because they have the budget to do so. However, when it comes to small businesses, they must do intelligent and selective advertising only. Their first course of action should be to identify the advertising channels that work best for them. Just because you are a restaurant at the corner of a street does not mean you have to use awnings, vinyls, neon signs, and all other types of materials for advertising purposes. Pick the ones that work and skip what doesn’t.

Too Many Work Hours

You don’t necessarily have to follow the trends of your competitors to compete with them. It does not matter how good they are, even the best ones can make mistakes at times. Many business owners choose to keep their premises opened for customers for long hours. They will open the business early in the morning and close it late at night just so they can serve more customers. However, one must do cost calculation before taking such a step? What if you are getting only five customers in the first three hours of the business and five more at the last two hours?

Now imagine the cost of utility, wages of your employees, etc. Are you covering the costs of keeping your business opened for five additional hours with only 10 customers? Even if you want to continue this way, you better test it for a week only. If the response is cold, you should quit this practice as soon as possible.

Pursuing the Best of Everything

The idea sounds great but is not the way to go about doing business when you are in your early stages. You should spend your money on things you need, not the things you want unless you have the budget to do so. If you are renting space for your office, you should look for a place that you can easily afford. Going for the best location in the most commercial area will cost you a lot of money. You can save your money even when it comes to internal equipment. Why buy new couches, seats and brand new computers when you can do with high-quality used equipment?

Why go for a printer with fancy looks and capacity to print hundreds of pages in a minute when you won’t ever need that many printouts at a time? Go with simple and beautiful when it comes to decorating your office. You don’t want to spend your budget on things that are not going to yield any benefits for your business.

Hiring IT Staff

IT is integral to any business today, tech or non-tech. However, it does not mean you have to have an IT team on board. One of the beauties of modern technology is that it allows you to outsource a lot of the business processes. The best thing about outsourcing business processes is that you can save a lot of money by doing so. Managed IT services are a perfect way for you to save IT costs while benefitting from expertise of the best professionals of the industry. Rather than paying thousands of dollars to three or four IT people, it makes more sense for small businesses to outsource their IT processes for a small monthly fee.

The good news is that you can outsource almost anything IT-related. From basic helpdesk to on-demand data officers, IT outsourcing can cover a lot of ground for you.

Unnecessary Debts

Taking loans when starting a business is imperative for your growth and to have enough cash in hand to support your operations. However, there are more ways to fund your business than you might realize. Many small business owners follow venture capitalists and conventional banks when it comes time to fund their businesses. However, crowdfunding has emerged as an amazing funding option for startups and small businesses. The good thing about crowdfunding is that you do not necessarily have to offer equity to the investors in your business. Sometimes, you can just reward them with a sample of your product.

Hiring Only Full-time Employees

If you own a small business, you might want to consider hiring interns. Interns can benefit your business in many ways. First, you do not have to pay them the salary of a full-time employee. Second, you can ask them to do a lot of the mundane tasks that otherwise affect the productivity of your full-time employees negatively. While it might not be the best practice, in some countries of the world they have free internships as well wherein you do not have to pay your interns. However, that’s not the right thing to do, and you should compensate their work to keep them motivated.